This article first appeared on GuruFocus .
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Total Revenue:$71.6 million, up 30% year-over-year.
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MRD Revenue:$66.2 million, up 33% year-over-year; core MRD revenue (excluding milestones) grew 49%.
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Clinical Revenue (MRD):Increased 53% year-over-year, driven by a 43% increase in testing volumes and a 7% increase in ASP.
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Pharma Sequencing Revenue (MRD):Grew 38% year-over-year, excluding milestones.
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Immune Medicine Revenue:$5.4 million, up 8% year-over-year.
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Sequencing Gross Margin (MRD):72%, up from 64% a year ago.
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MRD Adjusted EBITDA:$9.1 million, compared to $1.9 million a year ago.
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Total Company Adjusted EBITDA:Loss of $0.7 million.
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GAAP Net Loss:$39.9 million, including $26.4 million of debt extinguishment expense and interest expense.
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Cash Position:Approximately $357 million at quarter-end.
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Full-Year MRD Revenue Guidance:Raised to a range of $268 million to $278 million.
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Full-Year Operating Expense Guidance:Narrowed to $350 million to $355 million.
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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MRD revenue (excluding milestones) grew 49% year-over-year, driven by 43% growth in clinical testing volume and strong pharma sequencing.
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Sequencing gross margin expanded to 72%, up from 64% a year ago, reflecting lower assay costs and operating leverage.
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Clinical testing volume reached over 36,100 clonoSEQ tests, with 11% sequential growth and broad-based gains across all reimbursed indications.
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Blood-based testing exceeded 50% of total clonoSEQ volume for the first time, supporting more frequent testing and community adoption.
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The company raised full-year MRD revenue guidance to $268-$278 million and expects to achieve positive adjusted EBITDA and free cash flow by year-end 2026.
Negative Points
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Immune Medicine revenue was only $5.4 million, up 8% year-over-year, and the segment reported an adjusted EBITDA loss of $6.3 million.
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The company is winding down its research use only pharma services business, which operated around breakeven but was not core to Immune Medicine.
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No milestone revenue was recognized in Q2 2026, compared to $5.5 million in the prior year quarter, highlighting lumpiness in pharma revenue.
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The separation of Immune Medicine is still in process, with the preferred path not expected to be identified until year-end, creating near-term uncertainty.
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GAAP net loss was $39.9 million, including $26.4 million in debt extinguishment and interest expenses related to the retired OrbiMed financing agreement.
Q & A Highlights
Q: Can you talk about the drivers behind the 15% sequential growth in multiple myeloma, your largest indication, given it's a more mature market? A: Susan Bobulsky, Chief Commercial Officer - MRD: The growth reflects our continued focus on this top priority indication, particularly driven by the increase in blood-based testing. This is critical for accessing untapped users in the community setting where bone marrows are difficult and for increasing interim surveillance testing. We will continue to invest in this blood testing strategy, develop clinical actionability data (like the MIDAS trial), and leverage EMR integrations to standardize testing. Chad Robins, CEO, added that despite this strong quarter, they are only 17% penetrated in multiple myeloma, indicating a long growth runway.
Q: As blood-based testing becomes a larger share of volume and drives more serial testing, should we focus on reported ASP or per-patient economics as the key metric? A: Chad Robins, CEO: Both are intertwined. We are in productive dialogue with Medicare's MolDx program to expand the number of tests per episode, which is the quickest way to address coverage gaps. This only applies to the Medicare population (~30% of business), as commercial payers don't have test number limits. We are also working on a recurrence monitoring indication for CLL. The main strategy is to increase tests per patient over their lifecycle, and we have multiple paths to ensure we get paid for that, which will be captured in the revenue line.
Q: Can you provide detail on the concentration of volume from top ordering HCPs and how that informs your strategy to go deeper vs. broader? A: Susan Bobulsky, Chief Commercial Officer - MRD: In Q2, over 5,100 HCPs ordered clonoSEQ. The top 100 users make up about 10% of volume, and it takes about 2,000 providers to get 80% of the volume. The user base has become more distributed over time, reflecting our strategy to broaden use in the community. We still have a significant opportunity to go broader, as nearly half of U.S. hematology clinicians currently order clonoSEQ, but we also have room to go deeper with top users by standardizing testing and optimizing frequency through EMR tools.
Q: Where do you stand with the two large commercial health plans you are recontracting with, and is this necessary to hit your $1,400 ASP target? A: Chad Robins, CEO: We have a productive dialogue going on with both. It's a matter of time, and we hope it will be resolved in the second half of this year. However, it is not necessary to hit the $1,400 ASP target as we have many other paths to get there. We would consider it potential upside.
Q: What are you seeing in the competitive environment, particularly with Natera's Foresight offering, and how do you view your positioning? A: Susan Bobulsky, Chief Commercial Officer - MRD: We see competition in the field, especially in DLBCL, but we have not yet seen any attributable impact on our growth. We believe we have a winning position with an unparalleled technology platform purpose-built for hematology, a strong evidence base, established reimbursement, and EMR integrations. The DLBCL market is still very early and underdeveloped, so we view it as a market expansion opportunity where increased awareness of MRD benefits us. We also expect to benefit long-term from the enhanced version of our ccDNA assay launched last year.
Q: Can you walk through the pacing for the MRD guide in the back half of the year? Does the implied slowdown from the low 40s growth rate reflect conservatism or specific headwinds? A: Susan Bobulsky, Chief Commercial Officer - MRD: We are very pleased with the first-half growth and feel comfortable delivering on the full-year guide of 38-40%. The midpoint of that range is the same growth rate we delivered last year, but off a much larger base, so we view it as a prudent place to be. We do not have specific expectations of deceleration; in fact, we are monitoring all main growth drivers which have trended strongly. On the pharma side, the business is lumpy and dependent on trial enrollment timing, so we remain prudent, but we see great trends with continued opportunity in multiple myeloma and leukemia.
Q: Can you provide any incremental updates on the separation of the Immune Medicine business and the strategic value of a standalone MRD business? A: Chad Robins, CEO: The "worst outcome" is that the MRD business is free and clear to pursue its growth strategy. Immune Medicine is a call option, and we are evaluating different value-maximizing paths with our advisor, Morgan Stanley. The separation could take several forms, and we will provide further information at the appropriate time.
Q: Does the updated volume guide assume a benefit from serial testing, or is that still upside? How do you see serial testing trending in the back half? A: Susan Bobulsky, Chief Commercial Officer - MRD: The guide does not necessarily contemplate specific increases in serial testing, although it is a key area of focus. We are pleased with the progress, having increased pull-through from 60% to 75% in our Flatiron/OncoEMR setting. We are applying these lessons to other settings, like our Epic customers, where we did our first custom serial tester interface in Q2. This remains a source of potential upside in the guide.
Q: Do you think a heme-only MRD platform is sufficient long-term, or would the separation change your outlook on bolstering capabilities in solid tumors? A: Chad Robins, CEO: The separation and the additional capital from the convertible note allow us to look at leveraging our platformincluding clinical evidence generation, market access, and scalable lab operationsfor other opportunities. This could potentially include solid tumors or other disease areas. However, we will be disciplined in our capital allocation, applying filters to ensure any opportunity has high gross margins, high sensitivity/specificity, and a differentiated competitive advantage. We also want to reiterate that there is still a long growth runway ahead in the MRD heme business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
